Army stepped up offensive against militants in Tribal Areas in response to 6 October ambush near Mir Ali in North Waziristan; 9 October raids included heavy air attacks. Fighting also surged in Swat valley, NWFP, after army deployed over 2,000 troops 23 October to fight militants linked to pro-Taliban cleric Maulana Fazlullah. 21 soldiers killed in attack on army convoy in Mingora 25 October; heavy casualties and many displaced as fighting followed. Temporary ceasefire reported 29 October by Fazlullah’s illegal radio broadcast, but fighting resumed quickly. Bloody attack on participants in 18 October Karachi rally to mark PPP leader Benazir Bhutto’s return from exile killed 140, injured more than 500; Bhutto unhurt. Her allegations 2 chief ministers and agency officials involved led to strained relations with Musharraf government. Other deadly suicide attacks followed at Rawalpindi police checkpoint near Musharraf’s army HQ 30 October and on air force bus in Sarghoda 1 November. Musharraf re-elected president 6 October by standing assemblies (PPP boycotted; all other opposition parties resigned from assemblies) but Supreme Court must still rule on his eligibility. Caretaker government due to take over 15 November.

Deadly fighting continued along tribal belt, with heavy army casualties in North Waziristan. 250 troops captured near Wana in South Waziristan by pro-Taliban militants late August still detained; negotiations ongoing for release. Powerful blasts in Rawalpindi 4 September killed 25 in targeted attack against security officials; no claims of responsibility. Osama bin Laden declared war against “infidel” President Musharraf in tape released 20 September, same day Election Commission announced 6 October presidential elections in standing national parliament and provincial assemblies. Musharraf cleared as candidate by supreme court 28 September despite dual-hat status as military chief; vowed to give up military post if elected president. Opposition protests grew on streets of Islamabad in response to his candidacy. U.S. issued rare criticism of string of opposition arrests that began mid- month; over 200 freed 27 September. Benazir Bhutto announced 18 October return from exile despite failure to secure public deal with Musharraf; fellow former PM Nawaz Sharif deported to Saudi Arabia within hours of return 10 September.

Escalated suicide attacks targeting security forces in North Waziristan and massive army retaliation followed end of Red Mosque siege. Responding to military reinforcements in tribal belt, pro-Taliban militants in South Waziristan renounced peace deal with military; army claimed 60 troops, some 250 militants killed. Some 100 soldiers missing in region 31 August, after earlier abductions in which 1 beheaded, others released. Fatal strikes by U.S. forces into Pakistan from Afghanistan reported. U.S. commanders first claimed, then denied they had Pakistani permission. At cross-border jirga in Kabul 12 August, Musharraf made rare admission Afghan Taliban fighters receiving support from within his country and pledged to fight against them. Critical shifts in political landscape: power- sharing deal between former PM Benazir Bhutto and President Musharraf discussed, stalled; but Bhutto said would return to country soon. Musharraf announced would resign as army chief but only after presidential polls. Supreme Court ruling 23 August allows fellow exiled former PM Nawaz Sharif return: said would contest elections.

Seizure of Lal Masjid (Red Mosque) by security forces sparked waves of retaliatory violence across border regions, as political and security crisis worsened further. Pakistani army commenced week-long siege of Red Mosque to end 6-month standoff with barricaded radical clerics and student followers 3 July. At least 16 killed first day of confrontation; thousands of militants surrendered 4-5 July whilst hundreds remained. Army stormed mosque 10 July following failed negotiations with mosque leaders; over 70 militants killed, including leader Abdul Rashid. Islamist backlash ensued with intensified attacks on security forces killing at least 180. Attacks coincided with 15 July announcement by militant leaders in North Waziristan they had suspended September peace agreement with Islamabad in response to increased troop deployment in area; government forces claimed 18 deaths in late-month fighting near Miranshah. Bomb attack killed 15 in anti-government rally in Islamabad 17 July; PPP workers likely target. Further suicide bombing in Islamabad 27 July targeted police and killed 14 near Red Mosque. President Musharraf suffered further blow with Supreme Court decision to reinstate suspended Chief Justice Iftikhar Chaudhry 20 July. Musharraf met former PM Benazir Bhutto in Abu Dhabi talks 27 July that could foster power-sharing deal; Bhutto publicly reiterated calls for Musharraf to step down as military chief.

Popular discontent with President Musharraf increased further. Demonstrations in support of suspended Chief Justice Iftikhar Chaudhry continued across country, attracting tens of thousands. Government confirmed opposition activists detained ahead of planned protests. Supreme Court hearing on Chaudhry’s challenge to suspension order and misconduct charge continues. Week-long protest and foreign criticism forced Musharraf to suspend legislation targeting broadcasting outlets critical of his government 10 June. Opposition again rejected suggestions Musharraf eligible for re-election by outgoing legislature; expressed concerns elections will not be free and fair, claiming that voters list disenfranchised more than 20 million. Insurgency-related violence continued: militants ambushed vehicle in Quetta killing 6 soldiers and 3 civilians 14 June; airstrike by unconfirmed source killed 32 pro-Taliban militants North Waziristan 19 June - Pakistan denied claims it was U.S. missile attack launched from Afghanistan. 10 Pakistani civilians killed as NATO fired across border in battle with pro-Taliban insurgents 23 June.

Instability and violence intensified as President Musharraf’s crisis deepened. Supporters of suspended Chief Justice Iftikhar Hussain Chaudhry continued protest against Musharraf’s rule, including 6 May procession from Islamabad to Lahore by tens of thousands. Over 40 killed in street violence 12 May after members of Muttahida Quami Movement (MQM) party, Musharraf’s local coalition partner, attacked opposition supporters of Chief Justice. Police failed to intervene and government refused enquiry. Hearing on Chaudhry’s suspension referred to Supreme Judicial Council (SJC), but hearing delayed until Supreme Court rules on SJC’s competence in matter. Musharraf ruled out return of former PMs Benazir Bhutto and Nawaz Sharif before end-year elections. Bhutto and Sharif insist they will return. Over 25 killed in 15 May suicide bombing in Peshawar hotel; 10 in 29 May car bombing outside courthouse. Border clashes in Paktia province involving Pakistani and Afghan forces led to deaths of over 12 Afghans, as well as 1 U.S. and 1 Pakistani soldier killed by suspected local militia. Clashes followed NATO meeting on easing border tensions.

Internal security concerns rose after 28 April suicide bombing killed 30 and wounded interior minister at Peshawar political rally; prime suspects militants linked to al-Qaeda. Fighting between rival groups of pro-Taliban tribesmen continued in South Waziristan. Islamabad admitted military involvement for first time: supported Pakistani Taliban commander Mullah Nazir against rival pro-Taliban group allied with Uzbek fighters. Nazir now consolidating control over South Waziristan. Controversy deepened over March suspension of top judge Iftikhar Chaudhry, who faced hearing before panel of judges he claimed biased; protests called for President Musharraf’s resignation over issue. 90 Baloch members of Jundallah militant group arrested by Tehran in crackdown after spike in Baloch attacks last month.

Fighting flared in South Waziristan between Uzbek militants and local militias. Violence began 18 March as local militias sought to expel foreign militants from bases near Wana; clashes reportedly killed over 150 foreign fighters. Pakistani intelligence said key al-Qaeda camps destroyed and President Musharraf claimed battles prove success of controversial pacts with local leaders to fight foreign militants. New security pact signed with tribal leaders in Bajaur, where 4 ISI intelligence agents shot 27 March by unidentified gunmen. President Musharraf faced political crisis after suspending Chief Justice Iftikhar Chaudhary 12 March, sparking wave of judiciary resignations and protests over independence of judiciary; opposition demonstrations called on Musharraf to step down. U.S. Assistant Sec. State Boucher pledged $750 million in assistance to Afghan border areas during visit 15 March.

Spate of suicide attacks across country: sixth in month saw 16 killed in Quetta courtroom 17 February. U.S. intelligence reportedly shows al-Qaeda gathering strength from new bases in North Waziristan, after September 2006 Waziristan accord with Islamabad; Pakistani officials rejected reports as “absurd”. U.S. VP Cheney made surprise visit to Islamabad 26 February to discuss cross-border insurgency, as U.S. considered cutting aid to further pressure Pakistan into action. President Musharraf announced plans 18 February to secure re-election and constitutional amendment allowing him to remain army chief. Iran blamed Pakistan for providing base to Sunni insurgents Tehran claims bombed border city Zahedan early February.

U.S. increased pressure on Pakistan over its failure to clamp down on terrorism. U.S. intelligence director John Negroponte said al-Qaeda and Taliban leaders still operating from Pakistan base (see Afghanistan). Suicide attack on military convoy in Mirali, North Waziristan 22 January killed 4: first attack since Pakistan’s controversial September Waziristan Accord and likely reprisal to Pakistan strike on militants in South Waziristan 16 January. Locals claimed attack was by U.S. drone. NATO explained U.S.- led coalition helicopter strike in Shawal border region that killed 1 Pakistani soldier was “mistake”. Suicide attacks in Islamabad, North Waziristan and NWFP killed more than 20 in run up to Ashura, including attack near Peshawar Shia mosque that killed 15; government said Taliban-based militants responsible.